Bitcoin Price Fear & Greed Index Back to 'Extreme Fear' Dec 2018 Lows

Bitcoin investors are no longer as buoyant as they were three months ago, judging by the latest readings from the Crypto Fear and Greed Index.

The Crypto Fear and Greed Index is posting its most fearful levels since Dec. 2018

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Bitcoin investors are no longer as buoyant as they were three months ago, judging by the latest readings from the Crypto Fear and Greed Index (CFGI).

On Aug. 14, the Bitcoin-only index — which plots investor sentiment on a scale of 1 to 100 (where 1 represents doom and foreboding and 100 indicates blithe optimism and greed) — hit its lowest levels since December 2018.

Today: “fear,” yesterday: “extreme fear”

Just under three months ago, in late June, Bitcoin (BTC) investors had seemingly hit a level of unbridled optimism, with the CFGI reporting readings of as high as 95.

As of press time, the index is reporting a level of 31, having plunged as low as 11 on Aug. 14.

These are levels not seen since December 2018, in the depths of crypto winter — when Bitcoin was trading not much higher than $3,000 a coin.

Historical CFGI data reveals that the tipping point from “greedy optimism” to anxiety occurred on July 10-12, when sentiment dropped from 84 to 33 in just 48 hours. This coincides with a sharp drop from nearly $13,000 to under $11,600 in that same time frame.

Over the course of the past 30 days, the highest value reported by the index has been 64 — representing a fleeting recovery in sentiment during several days in early August.

Noting that the CFGI has been “relatively accurate at pinpointing bottoms or nearabouts on the daily,” macroeconomist and trader Alex Kruger tweeted defiantly “Are you afraid? I am not,” adding that the next key level for Bitcoin is at $10,300-10,325.

As reported this month, a recent machine learning-based study of over 48,000 Reddit posts and 7,500 crypto/blockchain-related articles from different media platforms revealed that the overwhelming majority of Reddit posts (85%) were positive.

Conversely, articles published by various mainstream media publications were, for the large part, dismissive of the crypto industry.

4 Comments

JJ Mulvenna

Very interesting. Big Question.. How do you access CFGI index data? Thanks.

Sung Cha

Another great confirmation that BTC should be bought here. Once the 6 month pendant formation is completed, a breakout to the upside should take BTC to next major resistance between $15,000-$17,000.